Flipkart’s board and management are considering a full buyout of stocks held by current employees as the timeline for the e-commerce giant’s initial public offering remains uncertain, according to three people familiar with the discussions. A similar plan for ex-employees will be considered later, the people said.
The buyout for current employees could take place any time from January to March 2027, with parent company Walmart expected to be the buyer, the people said.
Stock options held by current and former employees are estimated to be worth about $4 billion, according to the people. Bentonville, Arkansas-based Walmart, the world’s largest retailer, owns a majority stake in the company. Flipkart was valued at about $38.2 billion, Moneycontrol on 7 July.
“A buyout of stock held by current employees, estimated at about $2 billion, would be considered first. Management is then planning to consider another Esop (employee stock option) buyback for former employees,” said a senior executive who asked not to be identified. No timeline has been established for the subsequent transaction, according to people familiar with the discussions.
“We appreciate the perspective of all employees – current and former – and value their feedback. As with anything raised, we take it seriously,” a Walmart spokesperson said in response to Mint’s queries. “As we’ve said, an IPO remains an active part of our strategic roadmap, and we will move forward when the timing is right. Transitioning to public markets brings great opportunities, but also real operational responsibility. A thoughtful and disciplined approach will help support a successful transition to public markets.”
Mint reported on 1 October that Flipkart was considering an Esop round early next year to allow eligible employees to cash out 20-25% of their vested holdings. The latest reporting points to a full buyout being considered for current employees, although the terms remain unsettled.
Source of wealth
Stock options give employees the right to acquire shares in their company, subject to the plan’s terms. They can serve as both a retention tool and a source of employee wealth, but realizing that value often depends on a funding round, company-arranged liquidity event or IPO.
“With Esops, employees feel that they have an upside in the company and that they can earn much more than what their salary can give them. They also generally look for an exit window. If there is no exit window for employees, the Esops become like a simple piece of paper,” said Paras Savla, a partner at chartered accountancy firm KPB & Associates.
Former Flipkart Group executives including Myntra co-founder Mukesh Bansal, former Flipkart CFO Sanjay Baweja and former chief business officer Ankit Nagori, have written to Walmart seeking a buyout of their vested options, The Economic Times reported on 7 October.
“We spent all our lives at Flipkart, dedicating more than 10-15 years, and we expect fair treatment,” said a former employee who asked not to be identified.
Retention concerns
Uncertainty over encashing of stock options is also raising retention concerns, with some employees exploring opportunities outside, according to people familiar with the matter.
Moneycontrol reported that vice presidents Prathyusha Agarwal and Aakriti Chandra resigned in September, following the reported exits of senior vice president Gunjan Bhartia and vice president Amer Hussain. Flipkart said in March that group chief financial officer Sriram Venkataraman would step down.
In July 2025, Flipkart announced a $50 million Esop liquidity programme for 7,000-7,500 employees, allowing them to sell up to 5% of their vested stock options. Flipkart said it could consider another liquidity event if certain business milestones were achieved.
Flipkart had considered filing draft IPO papers with the Securities and Exchange Board of India by late 2026 or early 2027. The plan has since been put on hold. According to a Moneycontrol report in May, Walmart has asked Flipkart to prioritize achieving Ebitda breakeven by the end of FY27 before pursuing a private or public fundraise.
The uncertainty comes as Flipkart continues to invest across its core commerce and logistics businesses as well as newer ventures including its quick-commerce service Minutes.
Flipkart’s consolidated revenue from operations increased to ₹82,787.3 crore in FY25 from ₹70,541.9 crore in FY24. Its consolidated net loss widened to ₹5,189 crore in FY25 from ₹4,194.2 crore a year earlier, according to filings sourced by data platform Tracxn.